Photo: Illustration; Source: Maersk Decom

Maersk Decom starts-up free offshore decommissioning cost calculator

Decommissioning solutions provider Maersk Decom has designed a calculating tool for benchmarking decommissioning projects in the North Sea.

Maersk Decom said on Tuesday that its cost calculator was the ‘first free tool in the industry, enabling stakeholders to estimate project costs by providing a baseline forecast for decommissioning projects in the North Sea’.

According to the company, the aim of the tool is to better qualify and quantify forecasting for operators and regulators.

The online tool calculates based on information provided by the user from a series of questions regarding wells, potential platforms, FPSOs, and subsea equipment that require removal.

It gives the user a cost overview of all aspects of a decommissioning project, and the estimated output is to be used solely for benchmarking purposes and further planning.

Maersk Decom
Cost Calculator; Source: Maersk Decom

The company added that the cost calculator does not form a sufficiently detailed basis for meeting regulatory standards or requirements. However, Maersk Decom can provide help based on the information the user inputs in the cost calculating tool to provide estimates meeting regulatory requirements.

Jens Klit Thomsen, chief commercial officer of Maersk Decom, said: “The benefit of the cost calculator is that users can gain a quick overview of the potential cost range for a given decommissioning project. We hope that Maersk Decom can, in this way, help the industry to more easily take the necessary decision by having a better overview”.

Maersk Decom has a vision to have ‘no resource wasted’ and material and waste management is often a significant bottleneck in decommissioning projects.

The company seeks to increase transparency within the industry by providing a tool that helps users account for these costs.

The decommissioning solutions provider also stated that it allows for a more transparent process for the user to report on or demonstrate their compliance with UN Sustainability Development Goals.

Using a cost calculating tool that looks at the liability of a decommissioning project, including the management of materials and waste, is a new way of planning the project. By enabling a more transparent process, we see this as a step forward for the industry”, Thomsen added.

It is worth noting that the free-to-use cost calculator was launched on 20 April 2021 and can be tried out the here.